1. Why it Matters for Best Outcomes
A farm’s profitability does not stop at the gate — it depends on how produce reaches the buyer. Strong trade relations and market linkages ensure better prices, faster sales, and less exploitation. Whether through traditional mandis, contract farming, direct links with processors, or emerging e-commerce channels, access to markets defines how much of the consumer’s rupee comes back to the farmer.
2. When Trade Relations are Favorable
Farms with dependable buyers, fair mandi agents, or direct marketing channels enjoy stable sales and higher margins. Farmers in contract farming arrangements often benefit from assured prices, technical support, and input supply. Direct buyers (retail chains, processors, restaurants, export houses) create opportunities for premium crops and long-term relationships. Good trade relations reduce uncertainty and strengthen bargaining power.
3. When Trade Relations are Unfavorable
Without strong linkages, farmers remain at the mercy of middlemen, forced into distress sales at low prices. Weak relations mean delayed payments, poor price transparency, and limited choice of buyers. Farmers disconnected from modern markets cannot tap opportunities like organic exports, processing industries, or e-commerce platforms. Ultimately, lack of market power eats into profitability even when production is good.
